Concerns about supply quantity and quality –coupled with strong export demand – have pushed alfalfa prices higher. The cost of hay is now equal to the value of milk, the podcast shows.

Cropp and Stephenson also look at the latest U.S. Milk Production report and, perhaps more importantly, the nosedive that cheese and better prices have taken as their stocks rise sharply. Cheese stocks have reached record levels, says Cropp.

Looking at the world’s major dairy producers and shippers, the two economists believe U.S. dairy exports should remain strong this year. Dairy prices should remain in the $18-$19 range, although Stephenson has backed away from his earlier prediction that Class III prices could hit $20 per cwt.

In the 10-minute podcast, Cropp also discussed the failed farm bill and its implication for the dairy industry.